Northwest Bank invests $2.5 million in Erie development fund

Jim Martin @ETNMartin

Thursday

Dec 21, 2017 at 3:33 PMDec 21, 2017 at 5:09 PM

The fund has solid commitments of $17.5 million and tentative commitments of several million more dollars.

Jim Martin is neither an architect nor a community planner. But as president of Northwest Bank's Erie region, he's looking forward to having a seat at the table as the Erie Downtown Development Corp. starts making investments in the city.

The Warren-based bank announced Thursday that it will invest $2.5 million in the EDDC's equity fund that will be used to make those investments.

Northwest also agreed to contribute an additional $50,000 toward the administration of the nonprofit EDDC that will administer the fund.

The bank joins the Erie Community Foundation, Gannon University, UPMC Hamot and ErieBank, each of which has agreed to invest $2.5 million in the fund. Erie Insurance has pledged to invest $5 million.

Northwest's announcement brings the total amount invested to $17.5 million. According to sources, however, there are tentative agreements for investments of several million dollars more.

"Erie's a great city, and we're thrilled to give back by donating to the EDDC," Martin said in a statement. "We believe these funds will give the EDDC the jump-start they need in their revitalization efforts."

Martin said it's important to understand that the $2.5 million doesn't fall under the heading of charity.

"We look at it as an investment and not a donation," he said. "We are investing this money into a fund so they can buy buildings. It's the right thing to do. You get out of something what you put into it. If Erie is better, Northwest is better."

And if the EDDC follows a pattern established by other such groups, investors should eventually get their money back, but the process could take years.